Subscriber-based businesses need more than just a huge customer base. More than the number of customers, you also need to have a strong retention mechanism. If not, you’ll lose more subscribers than you can reel in new ones.
Apart from developing loyalty programs, using a subscription billing software helps arrest fall outs and improve customer retention. Here’s why.
1. The consumer journey is shorter and easier
The internet has produced a rather “spoiled” generation of customers who have short attention spans due to the bulk of content thrust upon them on a daily basis. If one has to go through several, complicated steps just to sign up for a service and receive a freebie, you’ll most likely lose their interest in the middle of the process.
A shorter, easier consumer journey ensures minimal fall outs from the beginning. This is especially true for subscription-based businesses, especially when it comes to the renewal and billing processes.
2. Less room for error and failed payment transactions eliminated
A shorter consumer journey also leads to less room for error. More steps means more elements that could potentially be exposed to mistakes like overcharging or billing the wrong customer. Substituting human or manual vulnerability with machine and software accuracy also bypasses costly errors.
A smart billing software will ensure that customers will have their accounts renewed and billed correctly and on time. This will also provide a consistent level of quality service to customers—they know that payment and communication channels will always be open.
If, by any chance, something goes wrong, it will be easier to track and correct, because the records from the database can be easily retrieved.
Moreover, a smart billing and payment software ensures that failed payment transactions are dealt with automatically. This will help eliminate customer churn due to friction during the payment process.
3. Customer data security
Recurring transactions are an inherent part of subscriber-based businesses, and a billing software will not only make these transactions easier but also safer for customers. Billing software usually incorporate multiple layers of security features to ensure that customer data will not be compromised.
When customers are confident that their information will be kept private, they will be more inclined to stay loyal to your brand.
4. Convenience for both customers and business owners
Using automated billing systems, for one, requires less paperwork. For customers, it means less time filling out forms, receiving reminders, and remembering to pay each time they want to renew their subscriptions.
For business owners, operational efficiency is the name of the game. There’s lower re-acquisition cost since there is only the billing system to maintain. At most, businesses only need to deliver reminder emails when the renewal period comes and customers only need to click one button to either continue or cancel their subscription. Even up-selling subscription packages can be as simple as sending text messages or emails.
A streamlined process through the use of billing software also eliminates unnecessary tasks and aligns the processes among different departments. This in turn also reduces turnaround times for both your staff and your customers.
These are only a few of the benefits that a smart billing software can give your business. Together with sound marketing strategies, it can lead to better customer experience and retention.